Date Added: Jan 2010
Accounts receivable financing is another name for factoring. It simply means selling your slow paying invoices at a discount to a factor in return for immediate cash. Factoring improves your cash flow and greatly simplifies your accounting process because once you factor your receivables i.e. sell your invoices, the factor becomes the owner and the invoices then reflect on the factor's books of accounts. The collection of payment related to the invoices is also taken care of by the factor and you are free to concentrate on growth and expansion of your business.